QUINCY - Proponents of a revitalized Quincy Center say they are disappointed that downtown redevelopment has fallen behind schedule, but relieved to hear about the possible exit of the project’s lead developer.

City councilors and local business leaders said Street-Works, the developer involved in Quincy Center planning for nearly a decade, had an unrealistic vision for a revitalized downtown and communicated poorly with the public, resulting in the unexpected halt of the project this past fall.

Quincy Mayor Thomas Koch has given Street-Works, the city’s private partner in the $1.6 billion downtown redevelopment project, 30 days to file key permitting plans and financial reports that were due in November, or else their deal is over.

Those familiar with the project say Street-Works won’t satisfy Koch’s request, and as a result, the 2010 land-disposition agreement between the developer and city will be nullified. Merchants Row, the now-stalled first block of development, is expected to restart next year as a private project, and Koch is prepared to find new development partners for the remainder of the downtown project if Street-Works doesn’t meet his request.

Todd Stern, senior director of financial strategies for Street-Works, said in an email that Ken Narva, the firm’s managing partner, would not be available for comment this week because of a recent death in his family. Other Street-Works officials didn’t return calls for comment.

The possible exit of Street-Works from the project was welcome news for members of the business community. Peter Forman, president of the South Shore Chamber of Commerce, said the developer’s grandiose designs and aggressive timelines weren’t viable for project investors.

“It left us thinking, ‘Are the developer’s eyes bigger than the market’s appetite for development?’” Forman said. “That was probably the case.”

Quincy Mutual Fire Insurance, a firm that has already invested $20 million into the downtown project, says Twining Properties of New York has taken over development of Merchants Row, a block consisting of Cottage Avenue, Chestnut Street and the 1400 block of Hancock Street. The newly designed project, expected to create new residential and retail space, isn’t expect to start until spring of 2015.

For downtown businesses, this means another year of inactivity on a block marked by construction fencing and a gaping hole off Chestnut Street.

“Short term, it hurts some businesses. There’s no question,” Forman said. “But in the long term, it can save an area and end up bringing more people.

Page 2 of 2 - Forman added: “It is an open wound right now. It will heal.”

Neil Kiley, owner of the Fat Cat restaurant on Chestnut Street, said his business has suffered because people avoid construction areas. But Kiley, whose restaurant abuts Quincy Mutual’s office building, said he is confident Merchants Row will get back on track under new leadership.

Kiley said Street-Works and the city weren’t transparent with local businesses about the status of the project.

“What really happened was always something completely different than what was told of us,” Kiley said.

Palmucci and at-large City Councilor Doug Gutro blamed most of the communication problems on Street-Works. Instead of getting updates from the developer directly, the councilors said they had to learn of the project’s struggles and Street-Works’ challenges – including three breach-of-contract lawsuits filed against the developer – in media reports.

“The people’s confidence (in Street-Works) has pretty much been eroding with each month and each media story,” Gutro said.